British schemes trimming equity

British corporate pension schemes cut back their equity exposure this year, moving most of the assets to fixed income, according to Mercer Investment Consulting's latest survey. The average equity allocation is 64%, down from 68% a year ago; fixed income was up to 34%, from 31%; real estate remained at 1%; and 1% was categorized as "other," including hedge funds and alternatives, for the first time. Fiona Dunsire, Mercer senior consultant, said nearly 20% of schemes are putting all their new money into bonds. The report said plan trustees and managers want to manage risk more closely.